Magna International Co., Ltd. has stepped up its investment in the declared new market for battery enclosures for electric vehicles, raising approximately $700 million to supply major electric truck programs at its two plants in Michigan and Ontario.
Battery Enclosure is part of a plan to establish itself as North America’s largest component supplier and a key producer of EV components and technology.
Last week, Magna announced a new round of spending, including a $198 million investment in its manufacturing footprint in Ontario. New battery enclosure factory in Brampton, near Toronto. The plant will also initially produce enclosures for electric versions of the Ford Explorer and Lincoln Aviator crossovers scheduled to be built near Oakville, Ontario in 2024, before making enclosures for the Ford F-150 Lightning electric pickup. . , president of Magna’s Body and Chassis Group, told Brothers publication car news canada.
The move comes on the heels of another Magna announcement last week of a battery enclosure plant in St. Clair, Michigan, about 50 miles north of Detroit. Powered by 2024 Chevrolet Silverado EV.
The factory has expanded from an initial investment of $70 million to $497 million today, quadrupling the workforce to 1,200 and doubling the size to 740,000 square feet.
Manufacturing investments are important as Magna grapples with the transition to vehicle electrification. But it’s not a simple switch.
Earlier this month, Magna blamed high costs associated with its new EV business, as well as costs associated with advanced driver assistance systems and other factors. lower profit in fourth quarterit fell 80% from the previous year, lowering the stock price.
But the company has indicated it will continue to invest heavily in emerging product areas.
“The accelerating shift to vehicle electrification opens up exciting growth opportunities for Magna beyond powertrains,” O’Hara said in a statement. “We were able to leverage our expertise to supply the battery enclosure, a product with great potential for the future.”
ohara said car news canada The company has an additional battery enclosure business “in the pipeline,” the company said. In addition to the F-150 Lightning and Silverado EVs, the company also makes the chassis for his GMC Hummer EV.
In a news release, Magna said the battery enclosure, which houses high-voltage batteries and other critical EV components, can be tailored to “meet the individual needs” of customers. Enclosures can be made of multi-material construction including steel, aluminum, or lightweight composites.
Magna ranks #4 car news List of Top 100 Global Suppliersglobal parts sales to automakers in 2021 will be $36.2 billion.
https://www.autonews.com/suppliers/magna-spend-michigan-ontario-bid-be-big-ev-player Magna Joins Bid to Become Large EV Player in Michigan, Ontario